Question: Bookkeeping Question/Reimbursable Expense
I'm stuck and we don't have an accountant yet. Does anyone know the correct way to record a reimbursable expense? We bought specific goods that were purchased exclusively for parents. The parents agreed to reimburse our costs. I have 2 chooses as best as I can figure it. 1) Pay the bill, invoice the parent, and post the reimbursement amount to the expense account I used when I paid the bill. This will wash out the orginal expense, and my operating statement will only show the net amounts for the expense account. ---OR--- 2) Pay the bill and post the reimbursement to an income account like dues and assessments. This will let me track totals for both the expense and income. The problem with this one is that it overstates our income and expenses. Thanks SO much...
Asked by big5
Advice from PTO TodayRose H writes:
Could you clarify something about the purchases? When you say they were purchased exclusively for parents? Do you mean the parent group or individuals?
Answer this question: